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Answering my own question: Article 7 allows member states to be suspended but not expelled. This would prevent Hungary from being disruptive in this manner. It requires a unanimous vote of all members (not including Hungary).

Hungary has been under Article 7 proceedings since 2018. Historically, Poland and Hungary protected each other by promising to veto any move to suspend the other. While Poland's stance has shifted under a newer government, reaching full unanimity among all 26 other states remains politically difficult.

EDIT #2:

Under Article 50, a country can choose to leave the EU voluntarily (as the UK did). No matter how disruptive a state is, the EU cannot force them into this process.
Wikipedia

In summary, the EU is currently "trapped" by its own treaties which prioritize consensus. The current strategy is to defund rather than expel, as the legal path to removing a member's voting rights or membership is effectively blocked by the requirement for a unanimous vote of all other members.